UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
|
|
Washington, D.C. 20549
|
|
FORM 8-K
|
CURRENT REPORT
|
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Date of Report (Date of earliest event reported)
|
November 30, 2018
|
Prudential Bancorp, Inc.
|
|
(Exact name of registrant as specified in its charter)
|
Pennsylvania
|
000-55084
|
46-2935427
|
(State or other jurisdiction
|
(Commission File Number)
|
(IRS Employer
|
of incorporation)
|
Identification No.)
|
1834 West Oregon Avenue, Philadelphia, Pennsylvania
|
19145
|
||||
(Address of principal executive offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code
|
(215) 755-1500
|
Not Applicable
|
||
(Former name or former address, if changed since last report)
|
||
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction A.2 below):
|
||
[ ]
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
[ ]
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
[ ]
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
[ ]
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Item 2.02
|
Results of Operations and Financial Condition
|
Item
|
9.01
|
Financial Statements
and Exhibits
|
(a)
|
Not applicable.
|
|
(b)
|
Not applicable.
|
|
(c)
|
Not applicable.
|
|
(d)
|
The following exhibits are included with this Report:
|
Exhibit No.
|
Description
|
||
99.1
|
Press release regarding results of operations and financial condition, dated November 30, 2018
|
PRUDENTIAL BANCORP, INC.
|
||||
By:
|
/s/Jack E. Rothkopf |
|||
Name:
|
Jack E. Rothkopf
|
|||
Title:
|
Senior Vice President, Chief Financial Officer and
Treasurer
|
|||
Date: November 30, 2018
|
Exhibit No.
|
Description
|
||
Release Date:
|
November 30, 2018
|
Contact:
|
Jack E. Rothkopf
|
At 4:30 p.m. EST
|
Chief Financial Officer
|
||
(215) 755-1500
|
● |
Net income for the three month period ended September 30, 2018 increased $364,000 or 17.6% over the same period in 2017.
|
● |
Core earnings (a non-GAAP measure) increased to $8.8 million for the year ended September 30, 2018 from $5.8 million for the year ended
September 30, 2017 (see reconciliation below).
|
● |
Net loans increased $31.6 million to $602.9 million from $571.3 million at September 30, 2017, reflecting growth primarily in the areas
of commercial real estate and construction lending.
|
● |
Total deposits increased $148.3 million to $784.3 million from $636.0 million at September 30, 2017.
|
SELECTED CONSOLIDATED FINANCIAL AND OTHER DATA
|
||||||||
(Unaudited)
|
||||||||
At September 30,
|
At September 30,
|
|||||||
2018
|
2017
|
|||||||
(Dollars in Thousands)
|
||||||||
Selected Consolidated Financial and Other Data (Unaudited):
|
||||||||
Total assets
|
$
|
1,081,170
|
$
|
899,541
|
||||
Cash and cash equivalents
|
48,171
|
27,903
|
||||||
Investment and mortgage-backed securities:
|
||||||||
Held-to-maturity
|
59,852
|
61,284
|
||||||
Available-for-sale
|
306,187
|
178,402
|
||||||
Loans receivable, net
|
602,932
|
571,343
|
||||||
Goodwill and intangible assets
|
6,673
|
6,811
|
||||||
Deposits
|
784,258
|
635,982
|
||||||
FHLB advances
|
154,683
|
114,318
|
||||||
Non-performing loans
|
13,389
|
15,393
|
||||||
Non-performing assets
|
14,415
|
15,585
|
||||||
Stockholders’ equity
|
128,409
|
136,179
|
||||||
Full-service offices
|
10
|
11
|
At or For the
Three Months Ended
September 30,
|
At or For the
Year Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
(Dollars in Thousands Except Per Share Amounts)
|
||||||||||||||||
Selected Operating Data:
|
||||||||||||||||
Total interest income
|
$
|
9,528
|
$
|
7,737
|
$
|
34,851
|
$
|
26,343
|
||||||||
Total interest expense
|
3,402
|
1,656
|
10,137
|
5,266
|
||||||||||||
Net interest income
|
6,126
|
6,081
|
24,714
|
21,077
|
||||||||||||
Provision for loan losses
|
125
|
410
|
810
|
2,990
|
||||||||||||
Net interest income after provision for loan losses
|
6001
|
5,671
|
23,904
|
18,087
|
||||||||||||
Total non-interest income
|
533
|
699
|
2,500
|
2,198
|
||||||||||||
Total non-interest expense
|
3,956
|
3,587
|
15,639
|
16,566
|
||||||||||||
Income before income taxes
|
2,578
|
2,783
|
10,765
|
3,719
|
||||||||||||
Income tax expense
|
142
|
711
|
3,701
|
941
|
||||||||||||
Net income
|
$
|
2,436
|
$
|
2,072
|
$
|
7,064
|
$
|
2,778
|
||||||||
Basic earnings per share
|
$
|
0.27
|
$
|
0.25
|
$
|
0.80
|
$
|
0.33
|
||||||||
Diluted earnings per share
|
$
|
0.27
|
$
|
0.24
|
$
|
0.78
|
$
|
0.32
|
||||||||
Dividends paid per common share
|
$
|
0.40
|
$
|
0.03
|
$
|
0.70
|
$
|
0.12
|
||||||||
Tangible book value per share at end of period (1)
|
$
|
13.55
|
$
|
14.36
|
$
|
13.55
|
$
|
14.36
|
||||||||
Common stock outstanding (shares) at end of period
|
8,987,356
|
9,008,125
|
8,987,356
|
9,008,125
|
||||||||||||
Selected Operating Ratios(2):
|
||||||||||||||||
Average yield on interest-earning assets
|
3.78
|
%
|
3.70
|
%
|
3.77
|
%
|
3.65
|
%
|
||||||||
Average rate paid on interest-bearing liabilities
|
1.50
|
%
|
0.90
|
%
|
1.23
|
%
|
0.82
|
%
|
||||||||
Average interest rate spread (3)
|
2.28
|
%
|
2.81
|
%
|
2.55
|
%
|
2.84
|
%
|
||||||||
Net interest margin (3)
|
2.43
|
%
|
2.91
|
%
|
2.68
|
%
|
2.91
|
%
|
||||||||
Average interest-earning assets to average interest-bearing liabilities
|
111.2
|
%
|
113.21
|
%
|
111.81
|
%
|
111.83
|
%
|
||||||||
Net interest income after provision for loan losses to non-interest expense
|
151.69
|
%
|
158.10
|
%
|
152.85
|
%
|
109.18
|
%
|
||||||||
Total non-interest expense to total average assets
|
1.51
|
%
|
1.62
|
%
|
1.60
|
%
|
2.10
|
%
|
||||||||
Efficiency ratio(4)
|
59.41
|
%
|
52.91
|
%
|
57.47
|
%
|
71.18
|
%
|
||||||||
Return on average assets
|
0.93
|
%
|
0.94
|
%
|
0.72
|
%
|
0.35
|
%
|
||||||||
Return on average equity
|
7.79
|
%
|
6.10
|
%
|
5.45
|
%
|
2.16
|
%
|
||||||||
Average equity to average total assets
|
11.94
|
%
|
15.36
|
%
|
13.28
|
%
|
16.31
|
%
|
At or for the Three Months Ended
September 30,
|
At or for the Year Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Asset Quality Ratios
|
||||||||||||||||
Non-performing loans as a percentage of loans receivable, net(5)
|
2.22
|
%
|
2.69
|
%
|
2.22
|
%
|
2.69
|
%
|
||||||||
Non-performing assets as a percentage of total assets(5)
|
1.33
|
%
|
1.73
|
%
|
1.33
|
%
|
1.73
|
%
|
||||||||
Allowance for loan losses as a percentage of total loans
|
0.85
|
%
|
0.78
|
%
|
0.85
|
%
|
0.78
|
%
|
||||||||
Allowance for loan losses as a percentage of non-performing loans
|
38.59
|
%
|
29.01
|
%
|
38.59
|
%
|
29.01
|
%
|
||||||||
Net charge-offs to average loans receivable
|
0.00
|
%
|
0.00
|
%
|
0.02
|
%
|
0.37
|
%
|
||||||||
Capital Ratios(6)
|
||||||||||||||||
Tier 1 leverage ratio
|
||||||||||||||||
Company
|
12.51
|
%
|
14.81
|
%
|
12.51
|
%
|
14.81
|
%
|
||||||||
Bank
|
11.86
|
%
|
13.59
|
%
|
11.86
|
%
|
13.59
|
%
|
||||||||
Tier 1 common risk-based capital ratio
|
||||||||||||||||
Company
|
19.74
|
%
|
23.94
|
%
|
19.74
|
%
|
23.94
|
%
|
||||||||
Bank
|
18.73
|
%
|
21.97
|
%
|
18.73
|
%
|
21.97
|
%
|
||||||||
Tier 1 risk-based capital ratio
|
||||||||||||||||
Company
|
19.74
|
%
|
23.94
|
%
|
19.74
|
%
|
23.94
|
%
|
||||||||
Bank
|
18.73
|
%
|
21.97
|
%
|
18.73
|
%
|
21.97
|
%
|
||||||||
Total risk-based capital ratio
|
||||||||||||||||
Company
|
20.58
|
%
|
24.83
|
%
|
20.58
|
%
|
24.83
|
%
|
||||||||
Bank
|
19.56
|
%
|
22.86
|
%
|
19.56
|
%
|
22.86
|
%
|
||||||||
(2) |
With the exception of end of period ratios, all ratios are based on average monthly balances during the indicated periods and are annualized where appropriate.
|
(3) |
Average interest rate spread represents the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing
liabilities. Net interest margin represents net interest income as a percentage of average interest-earning assets.
|
(4) |
The efficiency ratio represents the ratio of non-interest expense divided by the sum of net interest income and non-interest income. Included in non-interest
expense for the year ended September 30, 2017 was a $2.7 million (pre-tax) one-time charge relating to merger expenses.
|
(5) |
Asset quality ratios and capital ratios are end of period ratios, except for net charge-offs to average loans receivable.
|
(6) |
Non-performing assets generally consist of all loans on non-accrual, loans which are 90 days or more past due as to principal or interest, and real estate acquired
through foreclosure or acceptance of a deed-in-lieu of foreclosure. It is the Company’s policy to cease accruing interest on all loans which are 90 days or more past due as to interest or principal. Non-performing assets and
non-performing loans also include loans classified as troubled debt restructurings due to being recently restructured and which are initially placed on non-accrual in connection with such restructuring until such time that an
adequate sustained payment period under the restructured terms has been established to justify returning the loan to accrual status.
|
(7) |
The Company is not subject to the regulatory capital ratios imposed by Basel III on bank holding companies because the Company is deemed to be a small bank holding
company.
|
Non-GAAP Measures Disclosures
Reported amounts are presented in accordance with accounting principles generally accepted in the United States of America
(“GAAP”). The Company’s management believes that the supplemental non-GAAP information provided in this press release is utilized by market analysts and others to evaluate a Company’s financial condition and results of operations and,
therefore, such information is useful to investors. These disclosures should not be viewed as a substitute for financial results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures
presented by other companies.
|
||||||||||||||||
The following table shows the reconciliation of net income and core net income (a non-GAAP measure which excludes the effect
of the one-time non-cash charge related to the revaluation of the Company’s deferred tax assets, the one-time merger-related expense related to the Polonia acquisition and the one-time non-cash charge-off related to a large lending
relationship; management believes many investors desire to evaluate net income without regard to such expenses):
|
||||||||||||||||
|
At or For the Three
Months Ended September 30,
|
At or For the Year
Ended September 30,
|
||||||||||||||
|
2018
|
2017
|
2018
|
2017
|
||||||||||||
|
(Dollars in Thousands)
|
|||||||||||||||
|
||||||||||||||||
Income before income taxes
|
$
|
2,578
|
$
|
2,783
|
$
|
10,765
|
$
|
3,719
|
||||||||
Income tax expense
|
142
|
711
|
3,701
|
941
|
||||||||||||
Net income
|
2,436
|
2,072
|
7,064
|
2,778
|
||||||||||||
One time write-down of deferred tax assets
|
-
|
-
|
1,756
|
-
|
||||||||||||
One-time merger related costs (net of taxes)
|
-
|
(177
|
)
|
-
|
1,730
|
|||||||||||
One time charge-off (net of tax)
|
-
|
-
|
-
|
1,280
|
||||||||||||
Core net income
|
$
|
2,436
|
$
|
1,895
|
$
|
8,820
|
$
|
5,788
|
As of September 30, 2018
|
As of September 30, 2017
|
|||||||||||||||
(In Thousands, Except Per Share Amounts)
|
||||||||||||||||
Book Value
|
Tangible
Book Value
|
Book Value
|
Tangible
Book Value
|
|||||||||||||
Total stockholders’ equity
|
$
|
128,409
|
$
|
128,409
|
$
|
136,179
|
$
|
136,179
|
||||||||
Less intangible assets:
|
||||||||||||||||
Goodwill
|
--
|
6,102
|
--
|
6,102
|
||||||||||||
Core deposit intangible
|
--
|
571
|
--
|
709
|
||||||||||||
Total intangibles
|
$
|
--
|
6,673
|
$
|
--
|
6,811
|
||||||||||
Adjusted stockholders’ equity
|
$
|
128,409
|
$
|
121,736
|
$
|
136,179
|
$
|
129,368
|
||||||||
Shares of common stock outstanding
|
8,987,356
|
8,987,356
|
9,008,125
|
9,008,125
|
||||||||||||
Adjusted book value per share
|
$
|
14.29
|
$
|
13.55
|
$
|
15.12
|
$
|
14.36
|